Under what circumstances does the 90-day notice requirement for termination not apply to Ledgers franchises in Wisconsin?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, Item 17 of the Franchise Disclosure Document and Section 8 of the Franchise Agreement are hereby amended to require that prior to the termination of the Franchise Agreement Franchisor must provide Franchisee ninety (90) days written notice of a proposed termination, which states all the reasons for the termination, cancellation, non-renewal or substantive change in circumstances, and the Franchisee shall be given sixty (60) days from the date of delivery or posting of such notice to rectify any claimed deficiency. If the deficiency is rectified within the sixty (60) days the notice shall be void. The notice provisions shall not apply if the reason for termination, cancellation or non-renewal is insolvency, the occurrence of an assignment for the benefit of creditors or bankruptcy. If the reason for termination, cancellation
or non-renewal or substantial change in competitive circumstances is nonpayment of sums due under the Franchise Agreement, Franchisee shall still be entitled to (90) days written notice, as referenced above, however, Franchisee shall only have ten (10) days in which to remedy such default from the date of delivery or post of such notice.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the standard 90-day written notice requirement for franchise termination in Wisconsin does not apply if the reason for termination, cancellation, or non-renewal is due to insolvency, an assignment for the benefit of creditors, or bankruptcy.
In most termination scenarios, Ledgers is required to provide a Wisconsin franchisee with 90 days' written notice of a proposed termination, including all reasons for the action. The franchisee then has 60 days to rectify any claimed deficiency. However, the addendum specifies that the 90-day notice is waived in cases of insolvency, assignment for the benefit of creditors, or bankruptcy.
It's important to note that if the termination is due to nonpayment of sums owed under the Franchise Agreement, the franchisee is still entitled to the 90-day written notice. However, they only have ten days to remedy the default from the date of the notice, a significantly shorter period than the standard 60 days for other types of deficiencies.